중앙데일리

Global trade fiction with U.S. spooks investors

Korean stocks ended lower Monday on institutional selling as heightened trade friction between the United States, China and the EU has spooked investors. The won depreciated against the dollar.

The benchmark Kospi lost 54.59 points, or 2.35 percent, to 2,271.54. Trade volume was moderate at 5.89 trillion won ($5.26 billion).

On Sunday, U.S. President Donald Trump said the European Union was “as bad as China” when it came to trade during a TV interview. Tariff fears against Europe and reports of sluggish exports in Asia dragged the main index down.

Institutions dumped a net 400 billion won worth of shares. Foreigners purchased a net 115 billion won and individuals bought 242 billion won in stocks, keeping the index from falling further.

“Investors also sold off stocks related to inter-Korean economic cooperation to lock in recent profits,” said Han Ji-young, an analyst at Cape Investment & Securities.

Some stocks related to inter-Korean economic cooperation had risen after the two Koreas agreed last week to conduct a joint study on modernizing and connecting cross-border roads as part of efforts to carry out agreements reached at a summit in April.